1 Exhibit 11.1 THE CHUBB CORPORATION COMPUTATION OF EARNINGS PER SHARE PERIODS ENDED SEPTEMBER 30 Third Quarter Nine Months ------------- ------------- 1995 1994 1995 1994 ---- ---- ---- ---- (in millions) Net income.................................. $171.4 $152.7 $503.1 $372.6 After-tax interest expense on 6% guaranteed exchangeable subordinated notes............ 2.4 2.4 7.3 7.3 ------ ------ ------ ------ Net income for computing earnings per share. $173.8 $155.1 $510.4 $379.9 ====== ====== ====== ====== Average number of common shares outstanding................................ 87.1 87.6 87.0 87.7 Additional shares from assumed conversion of 6% guaranteed exchangeable subordinated notes as if each $1,000 of principal amount had been converted at issuance into 11.628 shares of common stock......... 2.9 2.9 2.9 2.9 ------ ------ ------ ------ Average number of common and common equivalent shares assumed outstanding for computing earnings per share............... 90.0 90.5 89.9 90.6 ====== ====== ====== ====== NET income per share........................ $ 1.93 $ 1.71 $ 5.68 $ 4.19